You sold one wheat future contract at $6.04 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were $5.98 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.

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Quizplus · Accepted Answer

Selling a futures contract at a higher price than the spot price at maturity results in a profit. The difference per bushel is $6.04 - $5.98 = $0.06. For 5,000 bushels, the total profit is 0.06 * 5,000 = $300.

You Sold One Wheat Future Contract at $6